Kaua Caxton Gitonga

Kaua Caxton Gitonga
Project Title
The Role of Informal Microfinance Institutions in Resilience of Rural Livelihoods to Climate Variability; A Case Study of Tharaka Sub County, Kenya
Degree Name
Doctor of Philosophy Degree in Environmental Governance and Management
Project Summary


Informal microfinance is the delivery of financial services mainly to low income people outside the

regulation of the monetary authority. Despite their importance in development, no studies have

undertaken a detailed analysis of structures and performance

in informal microfinance institutions.

This study aims to analyze structures and performance in informal microfinance institutions in

Tharaka South Sub County. It uses descriptive study design and multi stage sampling design. Data

analysis was done using thematic, descriptive and Kendall’s tau

-b correlation analysis. An informal microfinance performance index was developed using inductive and hierarchical approaches. The study found the informal microfinance institutions are marked by high performance which

isdetermined by their structures. Moreover, the study deduced that informal microfinance is a key

policy strategy for poverty alleviation, financial inclusion, gender equity and resilience building since

participants mainly include women and other vulnerable groups.